Sony is selling its New York headquarters for $1.1bn in the largest disposal of the Japanese electronics group’s programme of asset sales.

The sale of the building at 550 Madison Avenue, designed by renowned architect Philip Johnson, will result in an operating income gain of approximately Y685m ($7.6m), Sony said.

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Since the financial downturn, “trophy” properties, typically leased by premier office users, have been sought out as a more defensive investment given supply constraints, high barriers to entry and resilient rental rate growth.“The Sony building is a very high-quality building and investors are still chasing after these trophy assets in New York seen by investors as a good store of value,” said Ben Carlos Thypin, director of market analysis at Real Capital Analytics. “Sony is leasing it back for three years, which is very attractive as it gives the buyer cash flow while they decided what to do with it long term.”Read More: http://www.ft.com/intl/cms/s/0/11c73296-6155-11e2-957e-00144feab49a.html#axzz2IHF58wtX

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Ben Carlos Thypin

I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.